There is an R2 version of SBS, but it's not required for you to sync either a Treo 650 or 700p using VersaMail and ActiveSync.

You just need to follow the setup instructions provided by Palm on their website. Download the appropriate VersaMail User Guide for your specific device model and cellular company from http://www.palm.com/us/support/index.html

Okay,
We use Verizon Wireless and the provider distibutes Wireless sync which is installed on each desktop to sync right now.
You are saying I can install VersaMail from Palm on each Treo and choose Active sync as my sync option?
I have heard some bad comments about VersaMail having problem sync contact and calender information. Have you heard anything like that?
What do I need to do to do on the server to make ActiveSync work?

As for problems? If you search Google you'll find lots of folks have problems with VersaMail and ActiveSync... when it comes down to it though, it's probably due to their own misconfigurations by not following the directions. Don't shy away from the recommended solution because of what you've heard... especially when there aren't many better alternatives other than not using Palm OS based devices. (which is what I always recommend... I think it's always better to use Windows Mobile devices with Exchange anyhow).

On the server? You need to run the Configure Email and Internet Connection Wizard (CEICW -- which is linked as Connect to the Internet in the Server Management Console > To-Do List) and make sure that Outlook Mobile Access is enabled on the Web Services Configuration screen.

Then, make sure that the users that are synching have been created with the Mobile Users Template. If they weren't you can run the Change User Permissions wizard to properly apply the correct settings.

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